Spring farmer Mike Atkinson pays more than $700 to ship a pallet of produce that cost $450 two years ago, as diesel hit a record average of $5.72 per gallon in Houston on Tuesday, Sept. 15, according to AAA.
Atkinson, who has farmed in the Spring area since 1961, told ABC13 that shipping costs for his produce have surged along with fuel prices. Every tractor on his farm runs on diesel, and the cost of moving goods has climbed steeply.
"Two years ago, it used to be to get a pallet from Alamo, Texas to here was $450, for one day. Now, it's over $700," Atkinson said.
Atkinson Farms, which opened in 2004, grows more than 60 varieties of vegetables on about 100 acres in Spring, according to the farm's Urban Harvest vendor profile. The fourth-generation Harris County operation supplies Houston-area restaurants including Local Foods and Dish Society. Atkinson said he had not raised produce prices as of Sept. 15 but acknowledged he would have to if costs keep climbing.
The Houston diesel average is more than $2.50 higher than a year ago, AAA reported. Statewide, the average hit $5.83 per gallon on Monday, Sept. 14, Fox 26 reported. The national average reached $6.23.
Three forces are pushing prices higher, according to Fox 26: the closure of the Strait of Hormuz, Russia's ban on diesel exports and U.S. refineries running near capacity. Tom Seng, an energy finance professor at Texas Christian University, told CW39 that refineries were operating at 98%.
Ed Hirs, an energy economist at the University of Houston, told Marketplace on Monday, Sept. 14 that diesel users cannot easily cut consumption, so higher costs pass to consumers fast.
Mid-September marks the start of fall harvest season, Marketplace reported, when crops move from fields to processing plants and store shelves. Fuel accounts for roughly 15% to 30% of the total cost of food, according to the Independent Grocers Alliance.
Truckers face the same squeeze. Wendell Jenkins, who hauls time-sensitive oil field equipment, told ABC13 that his earnings go straight back into fuel. Only about 3% of passenger cars run on diesel, according to the U.S. Energy Information Administration, but the trucks and tractors that move food and freight depend on it entirely.
Atkinson, who started farming alongside his grandfather, said he walks 8 to 10 miles a day working his land and spends 60 to 80 hours a week on the job. He has weathered decades of price swings since 1961.
S&P Global Energy projected in September that Middle East crude oil production will not return to prewar levels by the end of 2027, the Houston Chronicle reported.







